# Tax and deduction settings

> STEP 2-5

Set how tax is handled in the refund calculation, and the discount and fee items that are deducted.

> **ヒント: Refund methods are registered in the common settings**
>
> The refund method for each payment method (automatic refund or bank transfer) is set in the [refund methods of the common settings](../setup/refund-method.html).

1. [Tax settings](#1-tax-settings)
2. [Discounts and fees](#2-discounts-and-fees)

## 1. Tax settings

Set whether the product prices imported from the connected system include tax. This affects the refund calculation.

1. Go to Settings > Returns and refunds > Refunds > Tax
2. If your product prices include tax, tick **Prices include tax** and save

If you use the Shopify integration, match the setting to your Shopify tax settings.

| Shopify setting | Recustomer setting |
|---|---|
| "All prices include tax" is on (you sell at tax-inclusive prices) | Tick **Prices include tax** |
| "All prices include tax" is off (you sell at tax-exclusive prices) | Untick **Prices include tax** |

※You can check the Shopify setting at Settings > Taxes and duties. It is not synchronised to Recustomer automatically, so change this setting too whenever you change it in Shopify

## 2. Discounts and fees

Add and edit the items used in the refund calculation (return fees, shipping for exchanges and so on). Items you add here can be set to "Charge in full", "Prorate" or "Do not charge" in the refund calculation of [2-3 Return policy settings](./return-policy.html#6-refund-calculation).

1. Go to Settings > Returns and refunds > Refunds > Discounts and fees
2. Click **Add item**, set the item name and whether it is taxable, then save

※If an item is taxable, the amount deducted includes 10% tax (for example, a ¥1,000 return fee is deducted as ¥1,100). Non-taxable items are deducted as they are

※The items provided by default, such as the shipping on the order and order-level discounts, cannot be edited

※If [return status synchronisation](../setup/return-sync.html) is on with the Shopify integration, the refund amount comes from Shopify and the adjustment items set here are not applied